land with planning bridging loan
We are a principal lender that can fund land that has full planning permission up to 60% of its current value. It doesn’t matter whether this land has planning for residential, commercial or industrial use, we can still provide a bridging loan to enable you to purchase the land and subsequently develop it.
We always use the full Open Market Value (OMV) of the land and as long as one of our panel valuers confirms the value, we will lend up to 60% of it.
TO BE CLEAR…WE LEND OUR OWN MONEY ON ALL LAND WITH PLANNING BRIDGING LOANS.
land with planning overview
Residential development land
Land earmarked for Commercial & Industrial development
Full planning (not outline) required in all cases.
England & Wales
21-85 years of age at the end of the term
Limited companies, LLPs and individual borrowers
Foreign nationals with UK property assets
Minimum loan of £100k
Maximum loan of £1.5m on all land with planning applications
We lend up to 60% of the 180 day Open Market Value (OMV) of the security
Maximum loan term of 18 months.
2% arrangement fee
1% exit fee
Typically 1.19% per month
Regardless of whether the land is residential, commercial or industrial LAND WITH PLANNING BRIDGING LOANS
Experience is everything
Breeze Capital are experts in short term lending and more specifically, we are experts when it comes to funding land that has full planning permission in place.
Our bridging loans are designed to allow developers and borrowers to maximise opportunities on land purchases, that have full planning approval at which point they can then apply for development finance to realise their plans.
If we are unable to fund your project for any reason, then occasionally we will refer you to our partners who are also experts in land with planning bridging loans.
This planning gain can be quite lucrative for borrowers and we can help realise some of that value by providing a 12 month bridging loan. This loan can be used in one of two ways:
If you purchased the land on an option agreement for say £150k and now after 12 months work you have finally achieved and been approved for full planning taking the value to £800k, we can help you release some of the ‘gain’ as we will base our bridging loan on the increased value of £800k – not the £150k you originally paid for it.
We can also refinance a more expensive loan that you may have taken against the land before planning permission was granted. Land with outline planning only is a much riskier loan for a bridging lender so the lenders who offer this solution will often charge much higher rates of interest.
Applying for a land with planning bridging loan
It is a simple process but first you must check out planning permission on the government website:
To provide you with Heads of Terms, all we need to know is:
- The original price you bought the land for (whether this is pre or post planning)
- The current valuation as is
- The title number of the land
- The name of the borrower and all shareholders
- How much you are looking to borrow
- Your exit – how will you repay us back
Please note: If development finance is your exit route, then we will need to see a full development appraisal to ensure that the development works. We are also very experienced in development finance so we need to be certain that another lender would refinance our bridging loan.
It’s not all about the rate but…
It can make a huge difference on your bottom line profit. Where we stand out from other bridging lenders is that we do not have different interest rates (or LTVs) for different asset classes.
For example, we will quote 1.1% per month on a piece of land with full planning for residential houses as we would on a piece of land with full planning for 2 x 1200 SQ FT industrial units.
We believe that if we like the asset, like the borrower and the numbers and exit work, then there should be absolutely no difference in the rates charged.
A land with planning bridging loan is open to everyone
The other thing to note is that because this is simply a bridging loan, there is no requirement for the borrower to have experience in this. They simply have to find the land, prepare and apply for planning permission (if not already in place) and we can lend against it.
We would prefer for the borrower to be an experienced developer if the exit strategy is to refinance our bridging loan with development finance but it is not essential
Transparent fee structure
We don’t hide anything. When we receive your enquiry we will assess immediately. If it’s one we like and we think we can support, we will provide you what we call Heads of Terms.
Heads of Terms highlight what we can offer along with our rate of interest.
Once we produce terms, we rarely amend them unless the loan itself has fundamentally changed, so you can be safe in the knowledge that all of the fees quoted will remain in place.
And we don’t believe in onerous personal guarantees
To find out how we can help you obtain a bridging loan on land with full planning permission, with just a 30% Personal Guarantee (PG), please get in touch.
You can get in touch with us via our contact page here or you can use more traditional contact methods below.
85 Watergate Street